One Magic

4 min readMay 31, 2021

One Magic is a improvement fork of Alchemix Finance which released on BSC. One Magic has a special automatic loan repayment system. Users can spend their future income.

How to use:

Deposit will be used in a yield vault
Mint 50% of deposit by onUSD immediately
onUSD is a 200% collateralisation ratio stable token, anchored at $1
Use your onUSD to buy what you like, your deposit will automatically help you pay off your debts

Vault

(Reference：https://alchemix-finance.gitbook.io/alchemix-finance/vaults)

Deposit BUSD into the vault.
Borrow onUSD up to 50% in amount of deposited collateral. Loans will have a absolute minimum 200% collateralisation ratio.
Deposited BUSD is deposited into the yield vault. (could be Alpaca or others)
Yield is harvested from the yield vault.
Harvested yield pays down the global debt in the system, reducing all depositor’s debt. If you have deposited BUSD but not borrowed onUSD, the yield will increase your onUSD borrow limit.
Once the harvested yield has reduced the global debt, it is transferred to the Transmuter Contract.
Users can withdraw deposits in amount up to reaching the 200% collateralisation ratio. So as the protocol pays down your debt, you can withdraw more BUSD.
At any time you can repay a portion or all of your debt in order to unlock your collateral. BUSD and onUSD are treated 1:1 for repayment and liquidation. As such, you can repay your onUSD debt with onUSD and/or BUSD. Repaying debt with onUSD is also a pegging mechanism because if onUSD were to be under the peg, users could buy it from AMMs and pay off their debt at a discount.
At any time, you can liquidate a portion or all of your collateral. The contract will repay your onUSD debt using the BUSD from your collateral.

Transmuter

(Reference：https://alchemix-finance.gitbook.io/alchemix-finance/transmuter)

The Transmuter is the primary pegging mechanism for the One Magic synthetic tokens. The Transmuter.sol contract powers the Transmuter. Harvested yield will flow directly to it as it comes in and ensures that participants will be guaranteed a 1:1 redemption of onUSD for BUSD.

Users deposit onUSD into the Transmuter. As the yield comes in, it will credit users BUSD proportional to the amount they have staked. When a user chooses to withdraw the converted BUSD, an equal amount of onUSD will be burned.

One interesting side effect of this process is that a user’s position can be over-filled. For example, a user deposits 1000 onUSD, and some time later, that staking position will have 1050 BUSD filled. Once a user has gone past this limit, it is possible for other users to initialize a claim on their behalf. For any balance of BUSD over their staked onUSD, the user who claimed on their behalf will have that surplus in amount immediately convert their staked onUSD. In the case of the example above, the user who claimed it will have 50 of their onUSD immediately converted into BUSD. If the person who staked the onUSD claims their BUSD with a surplus, the surplus will be cycled back into the Transmuter and be spread globally.

The Transmuter was upgraded and now deploys its capital into the yearn yvBUSD vault. The yield it harvests is passed into the Alchemix Vault contract and boosts the yields of BUSD depositors. This loop also effectively compounds yield in the system, thus helping to repay loans even faster. There is a 5 million BUSD buffer that is not deployed to the yearn yvBUSD vault in order to improve the UX of using the Transmuter by saving users gas for calling the transmute function.

ONM token

ONM is OneMagic’s DAO token, which can obtain dividends and voting rights.

Day emission starts at 10,000, monthly reduced by 10%, 3 years total is 2982410
65% Staking pool
10% Pre-Sale
10% Operating Fund
10% Airdrop to ONS staked in Boardroom weekly
vesting synchronously Staking pool distribution
5% Airdrop to ALCX staked in ALCX pool weekly
vesting synchronously Staking pool distribution
After 3 years, disritbute 4% of the total supply per year

Staking Pools

18% onUSD-BUSD LP tokens. Establishing a peg as close to $1 as possible and providing deep liquidity for onUSD is of utmost importance. Doing so will give real utility for onUSD as an advance on yield farming income as it can easily be converted to BUSD with low slippage.
60% ONM/BNB SLP tokens. This pair will be there to provide liquid markets for the OneMagic
governance token.
2% onUSD tokens. This will be an initial pool to incentivise holding onUSD until the onUSD/BUSD pair becomes sufficiently liquid. It also serves as a very low-risk way of receiving ONM tokens.
20% ONM tokens. This pool is to reward holders of ONM who may be too risk-adverse to join in the ONM/BNB pool. The longevity of this pool will be determined by the community.